Oxford Street is on the way back up as a shopping destination, according to the bi-annual Oxford Street report from agent Lambert Smith Hampton.
A survey of more than 300 shoppers found that 79 per cent now consider it to be the UK's premier shopping destination, up from 77 per cent in 2000 and 63 per cent in 1998.
The New West End Company's focus on safety and cleanliness seems to be paying off, with 64 per cent saying the street has become safer, up from 58 per cent two years ago. Only 48 per cent now complain that the street is too dirty, compared with 61 per cent in 2000.
But shoppers still think more could be done to improve the Oxford Street experience. This year, 64 per cent called for more seating, up from 53 per cent; 32 per cent wanted more open spaces, up from 25 per cent; and 22 per cent wanted better signage, up from 10 per cent.
But the down side of the survey for retailers is that Oxford Street rents are on the increase again. Carphone Warehouse's decision to pay a£750,000 premium to secure 272/274 Oxford Street, on top of an annual rent based on£500 Zone A, has crystallised the recent upward trend.
But prime Oxford Street rents are still below their peak of 1998, when HMV, Disney and H&M all paid around£520 Zone A. Lambert Smith Hampton forecasts that there will now be another period of consolidation, with top rents remaining static at£500 Zone A until the end of next year.
But in the long term, the agent sees steady rent rises of between 4 per cent and 7 per cent per annum from 2004 to 2007, taking rents to£620 Zone A by 2007.
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